The atmosphere is a continuous fluid that envelops the globe, so that weather observation, analysis, and forecasting __________
1 answer:
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Answer:
Yield to call i.e 6.48%
Explanation:
In this question we use the rate formula which is shown in the attachment below:
So in the first case
Given that,
Present value = $1,100
Future value or Face value = $1,000
PMT = 1,000 × 8% ÷ 2 = $40
NPER = 10 years × 2 = 20 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the yield to maturity is 3.31% × 2 = 6.62%
So in the second case
Given that,
Present value = $1,050
Future value or Face value = $1,000
PMT = 1,000 × 8% ÷ 2 = $40
NPER = 5 years × 2 = 10 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the yield to call is 3.24% × 2 = 6.48%
Since yield to call is less than the yield to maturity so the yield to call is to be earned
